The Bitcoin price (BTC) plunged to $ 50,900 on April 18, which some analysts attribute to a low hash rate and rumors of possible US regulatory action against unnamed “financial institutions” accused of money laundering. By coding.
Although it is difficult to find a single reason, the sale of nearly $ 5 billion of COIN shares by Coinbase executives may have played a major role in the fall. Insider sales, especially a few days after a high-profile listing, are a bearish sign.
After this recent downturn, investors will question whether to buy on downturns or go out in anticipation of further downturns? Traders should keep an eye on the strength of the retracement, as this will give an indication of the next possible move.
Let’s take a look at the technical aspects of the 5 best cryptocurrencies that may try to lead the recovery in the next few days.
BTC / USDT
Bitcoin’s inability to bounce off the 20-day exponential moving average ($ 59,053) on April 17 showed that there is little buying in downturns. Sales accelerated today after the price fell below the 50-day simple moving average ($ 56,264).
However, the long tail of daylight indicates that buyers are trying to stop the decline at the $ 50,460 level. If the return continues, the Bears will try to resume the trend again, but will probably face tough resistance between $ 61,825.84 and $ 64,849.27. An eruption of this zone of resistance would indicate that the current low was only a retreat to get rid of weak hands.
On the other hand, a failure to support a repayment or develop a bounce in the next few days will indicate that demand is drying up at higher levels. This is likely to activate the Bears, who will then try to regain their dominance and break the $ 50,460 support.
If successful, sales could intensify as short-term speculators and traders could dump their positions. This can bring the price down to $ 43,006.77. This is an important level to watch out for, a break below indicates that the BTC / USDT pair has reached a peak in the short term.
The 4-hour chart shows that the bulls bought the decline aggressively to $ 50,460, but the recovery meets resistance at $ 56,500. This indicates that traders are stuck at higher levels and close their positions at collections.
However, it is a positive sign that the bulls have not given up the fight. They are trying to protect $ 53,000 in support. This could result in a tight merger between $ 53,000 and $ 56,500 in a matter of days.
If the price goes above $ 56,500, the pair could rise to 20-EMA, which is likely to be resistance again. If the price falls from this level, the couple can try again for $ 53,000, then $ 50,460.
The declining moving averages and the relative strength index (RSI) near the overbought zone show that the bears have an edge.
VET / USDT
The sharp rise in VeChain (VET) on 16 April pushed the RSI above 87, indicating that the rally was sharp in the short term. The alternative currency tried to continue its bullish move on April 17, but the long week in the light of day showed that traders took profits at higher levels.
The sale continues today, with the VET / USDT falling to $ 0.169, above the 61.8% Fibonacci retracement level of $ 0.16. However, the long tail of light today shows strong purchases at lower levels.
If the bulls manage to hold the bounce, the pair will try to increase again to the general resistance of $ 0.279. A break of this resistance can resume the bullish trend. The next upside target is $ 0.362.
On the other hand, if the price drops from $ 0.279, the couple may be stuck in a certain area for several days. This positive view will be invalid if the bears sell at the rally and the price falls below the $ 0.16 support level.
In the 4-hour chart, bulls buy for 50 SMA, but the recovery has reached $ 0.227. The Bears tried to resume the correction, but the bulls bought again on the downturn during the 20-EMA. This shows that bears sell at rallies and bears buy at falls.